Market Link Guide - Colombia

08.11.2019

Key Features

CSD link as defined under CSDRa

Yes

Type of link

Indirect

a. CSD Regulation (EU) No 909/2014 art. 2 (29)


CSD

Custodian

Name

Deceval S.A. for domestic equities, government bonds and corporate bonds.

Depósito Central de Valores (DCV) for government bonds only.

BNP Paribas Securities Services Sociedad Fiduciaria S.A.

FATCA GIIN

Deceval S.A. : C1LSWA.99999.SL.170

DCV -  Depósito Central de Valores del Banco de la República. Banco de la Republica is part of the Central Bank of Colombia and is not a legal independent entity. The Central Bank does not have a GIIN registered.

1G159I.00212.ME.170

LEI

CSD-Deceval LEI: 254900VMUX4V1CPO9456

CSD-DCV - Depósito Central de Valores del Banco de la República. Banco de la Republica is part of the Central Bank of Colombia, Banco de la República. The Central Bank LEI is 549300Q08P3G7KZVGB68

BNP Paribas Securities Services SCA  - parent company

549300WCGB70D06XZS54

Country of incorporation

Colombia

Colombia

Account type

Segregated accounts at beneficiary level
(For more information, please refer to Local Investor Account Requirements - Colombia.)

Segregated accounts at beneficiary level
(For more information, please refer to Local Investor Account Requirements - Colombia.)

Legal Account name/ holder

BPSS as the participant in Deceval and DCV hold individually segregated account for CBL customers/underlying beneficiaries based on TIN (Tax ID)

BPSS Sociedad Fiduciaria S.A on behalf of Third Parties – (Foreign)

Operational arrangements

 

Yes/No

Remarks

Settlement free of payment

Yes

Internal (CBL-CBL) transfers between customer accounts are not allowed in the Colombian market. FOP only possible in specific cases (see settlement services)

Settlement against payment

Yes

Internal (CBL-CBL) transfers between customers’ accounts are not allowed in the Colombian market

Eligible settlement currency: Colombian Peso (COP).

Settlement in COP. Customers shall cover their account prior to settlement. No clean payments are permitted in COP except COP transfers exclusively linked to securities activities.

Settlement against payment in central bank money account of CBL/CBL customers

No

CBL holds a cash account at the custodian. Against payment settlement takes place on BNP Paribas Securities Services Sociedad Fiduciaria S.A.

Bridge settlement

No

 

Shaping facility

No


Partial settlement

No


Settlement penalty fees

No


Pre-matching

No

Instructions can be cancelled unilaterally any time before settlement takes place.

Back-to-back processing

Yes

Back-to-back processing does not exist in the market; however, same day turnaround via linked instructions is possible.

Allegements

No


Automatic compensation

No


Registered securities

Yes

At beneficial owner level on the basis of the TIN (Tax ID).

Multi Market Securities

No


Lending and borrowing

No


Proxy voting

Yes

Split voting not permitted

Investment Funds

No


Liquidity Hub Connect

No


Sale and purchase of rights

No


Repo services

No


Market restrictions

Yes

No clean payments are permitted in COP except for COP transfers linked to securities activities.

FTT

Yes


Capital Gain Tax

Yes

First in, First Out “FIFO” Method

Daily reconciliation

Yes

 

Moment of entry of instructions

The moment of entry is when the trade is entered/recorded into the CSD system and a trade number is generated; then it is approved for further settlement.

Irrevocability of instructions

Matched instructions are binding and cannot be unilaterally cancelled.

Finality of instructions

Settlement in Colombia is considered final and irrevocable as from the time the instruction is settled in the CSD systems.(governed by Law 964 of 2005 article n.10).

Legal Arrangements

The below section is based on the legal opinion obtained by CBL that was issued on 21 October 2019.  The information is provided for guidance only and should not be considered in isolation or as constituting a complete or definitive legal advice on any specific matter.

No insolvency proceedings against the custodian

Confirmed

Custodian’s liability for negligence

Confirmed

Book-entry regime with in rem rights

Confirmed

Recognition of nominee concept

The laws of Colombia do not recognise ownership exercised through a nominee company nor beneficial ownership. The beneficial ownership of the securities credited to the accounts will at all times be vested in the account holders, that is the customers

No right of retention for the custodian

Confirmed

Segregation of assets at the custodian

Confirmed

No right of use

Confirmed

No upper-tier attachments

Confirmed

Insolvency of the custodian with no impact on CBL's rights 

Confirmed

Shortfall pro-rated among holders

Not available. Under the laws of Colombia, customer accounts held at the custodian are individually segregated and the custodian has no right of use

Settlement finality in case of insolvency

Confirmed

Record keeping period of at least ten years

Confirmed